Finance Bill 2022 was published yesterday, 20 October 2022. The Bill largely gives effect to the measures announced in Budget 2023 and provides further detail on same, together with some new provisions and technical amendments.
In his press release on the Finance Bill, the Minister for Finance noted, “One of the key policies announced in the Budget was the Temporary Business Energy Support Scheme. The Finance Bill today outlines further detail to the scheme which will be available to trading and professional businesses who are experiencing significant increases in their energy costs. Revenue will publish the guidance on the scheme in the coming days and it will be open for claims in November.”
We have summarised the key amendments below:
In the context of the Housing Sector the Bill legislates for the introduction of the Vacant Homes Tax, Defective Concrete Products Levy, the extension to the Help to Buy Scheme and the rental credit.
However, the draft legislation relating to several measures which were announced on Budget Day were not contained in the Finance Bill and instead will be included at the Committee Stage, such as the measures relating to:
- the Key Employee Engagement Programme (KEEP),
- accelerated capital allowances for the construction of slurry storage, and
- the extension of certain of agri-tax measures
The Bill provides for several pension related amendments including: (i) abolishing BIK on employer contributions made on behalf of an employee to a Personal Retirement Savings Account (PRSA) (ii) legislating for the tax treatment of the new Pan European Pension Product (PEPP) and (iii) aligning the tax treatment of lump sums drawn down by an Irish tax resident from a foreign pension with the treatment that currently applies to Irish pensions. Our Wealth Management department will be reviewing the related provisions and provide analysis separately.
Other new measures include:
- Employer share reporting of certain benefits
- BIK exemption for Cargo Bikes
- Certain technical VAT amendments.
The measures in respect of Personal Tax, the Cost of Living, and other measures remain largely aligned to those announced on Budget Day and a summary of these measures can be found here together with the details regarding the Farming Measures, Excise, and Carbon Taxes, . There were no additional measures of note announced with regard to Capital Taxes.
Finally, while there are no provisions in the Bill relating to the Debt Warehousing Scheme, Revenue announced on Monday that businesses would not have to pay or enter into an arrangement to pay their warehoused debt until 1 May 2024.
We hope you find our commentary on Finance Bill 2022 of interest and we will keep you updated on developments as the Finance Bill passes through the Dail. To discuss in confidence what the measures mean for you or your business, please contact a member of our specialist tax team or your usual RBK contact.
